🚗 Lease Calculator
Estimate your monthly car lease payment based on the vehicle’s price, residual value, lease term, money factor (interest rate), and sales tax.
What This Calculator Does
This calculator estimates a monthly car lease payment the way dealers typically compute it: as the sum of a depreciation charge and a finance charge, plus applicable sales tax.
The Method
The depreciation fee is (Adjusted Capitalized Cost − Residual Value) ÷ Lease Term, reflecting the value the car is expected to lose during the lease. The finance fee (equivalent to interest) is (Adjusted Capitalized Cost + Residual Value) × Money Factor, where the money factor is approximated as APR ÷ 2400. These two fees are added together and then sales tax is applied to get the final estimated monthly payment.
Adjusted capitalized cost is the negotiated vehicle price minus any down payment or trade-in credit. The residual value is the car’s estimated worth at lease-end, usually set by the leasing company based on the vehicle and term.
Actual lease quotes may include acquisition fees, disposition fees, and other charges not captured here, and tax treatment varies by state. This tool is for general educational and planning purposes only and is not financial advice.